PepsiCo (PEP) Q2 2026 Financial Results Summary
· Stocks · QuoteReporter
PepsiCo (PEP) Q2 2026: Strong Earnings Growth Amidst Revenue Increase — Positive Outlook
PepsiCo, Inc. (NASDAQ: PEP) reported its second-quarter results for 2026, showcasing a significant improvement in earnings and revenue compared to the previous year. The company achieved a net revenue of $24,181 million, marking an increase of $1,455 million or 6.4% year-over-year (YoY) from $22,726 million in Q2 2025. This growth is attributed to a combination of organic revenue growth and favorable foreign exchange impacts.
Key Financial Metrics:
- Net Revenue: $24,181 million (Q2 2026) vs. $22,726 million (Q2 2025) — +6.4% YoY
- Organic Revenue Growth: 2.4% (Q2 2026) vs. 2.5% (Q2 2025)
- Earnings Per Share (EPS): $2.18 (Q2 2026) vs. $0.92 (Q2 2025) — +137% YoY
- Core EPS: $2.20 (Q2 2026) vs. $2.12 (Q2 2025) — +4% YoY
- Operating Profit: $4,023 million (Q2 2026) vs. $1,789 million (Q2 2025) — +125% YoY
- Operating Margin: 16.6% (Q2 2026) vs. 7.9% (Q2 2025) — +875 basis points
Analyst View:
This quarter is a strong positive for shareholders, driven by impressive earnings growth and a solid revenue increase. The 137% rise in EPS is particularly noteworthy, reflecting effective cost management and operational efficiencies. The company’s ability to maintain organic revenue growth at 2.4% despite a challenging market environment indicates resilience and strategic execution. The operating profit surge of 125% further underscores the effectiveness of PepsiCo's initiatives to enhance productivity and leverage its brand portfolio.
Dividend and Share Buyback:
PepsiCo has reaffirmed its commitment to returning value to shareholders, with total cash returns projected at approximately $8.9 billion for 2026, which includes $7.9 billion in dividends and $1.0 billion in share repurchases. This commitment to shareholder returns is a positive signal for investors looking for income and capital appreciation.
Guidance:
The company has affirmed its fiscal 2026 financial guidance, expecting organic revenue growth between 2% and 4% and core constant currency EPS growth of 4% to 6%. This guidance reflects confidence in the ongoing strength of its international business and the effectiveness of its strategic initiatives.
Forward Catalyst:
Investors should closely monitor PepsiCo's performance in the upcoming quarters, particularly its ability to sustain organic growth and manage costs effectively. The company’s focus on innovation, particularly in functional and permissible offerings, will be crucial as consumer preferences evolve. Additionally, any updates on acquisitions or divestitures could impact future growth trajectories.
In summary, PepsiCo's Q2 2026 results demonstrate robust financial health and a strategic focus on growth, making it a favorable investment opportunity for shareholders.
Note: The following tables present amounts in millions.
| PepsiCo, Inc. and Subsidiaries - Condensed Consolidated Statement of Income | 12 Weeks Ended 6/13/2026 | 12 Weeks Ended 6/1/2025 | 24 Weeks Ended 6/13/2026 | 24 Weeks Ended 6/14/2025 |
|---|---|---|---|---|
| Net Revenue | $24,181 | $22,726 | $43,624 | $40,645 |
| Cost of Sales | 11,193 | 10,087 | 19,032 | 18,258 |
| Gross Profit | 13,988 | 12,639 | 24,592 | 22,387 |
| Selling, General and Administrative Expenses | 9,008 | 8,711 | 16,054 | 16,021 |
| Operating Income | 4,023 | 1,789 | 7,236 | 4,372 |
| Other Income (Expense) | 59 | 42 | 117 | 65 |
| Income Before Income Taxes | 3,890 | 1,531 | 6,853 | 3,937 |
| Provision for Income Taxes | 848 | 292 | 1,415 | 791 |
| Net Income | 3,042 | 1,239 | 5,438 | 3,146 |
| Less: Net Income Attributable to Noncontrolling Interests | 23 | 16 | 34 | 25 |
| Net Income Attributable to PepsiCo | $3,019 | $1,223 | $5,404 | $3,121 |
| Net Income Per Common Share - Diluted | $2.18 | $0.92 | $3.88 | $2.25 |
| Weighted-Average Shares Used to Compute Net Income Per Share, Diluted | 1,384 | 1,332 | 1,384 | 1,382 |
(a) For the 12 and 24 weeks ended June 14, 2025, we recognized charges related to the impairments of our Rockstar and Be & Cheery brands.
| PepsiCo, Inc. and Subsidiaries - Condensed Consolidated Balance Sheet | 6/13/2026 | 12/27/2025 |
|---|---|---|
| ASSETS | ||
| Current Assets | ||
| Cash and Cash Equivalents | $10,251 | $9,159 |
| Short-Term Investments | 465 | 371 |
| Accounts and Notes Receivable, Net | 13,496 | 11,506 |
| Inventories | ||
| Raw Materials and Packaging | 2,948 | 2,581 |
| Work-in-Process | 163 | 143 |
| Finished Goods | 3,623 | 3,121 |
| Total Inventories | 6,734 | 5,845 |
| Prepaid Expenses and Other Current Assets | 1,829 | 1,068 |
| Total Current Assets | 32,775 | 27,949 |
| Property, Plant and Equipment, Net | 29,771 | 29,905 |
| Amortizable Intangible Assets, Net | 1,187 | 1,219 |
| Goodwill | 19,093 | 18,916 |
| Other Indefinite-Lived Intangible Assets | 13,990 | 13,847 |
| Investments in Noncontrolled Affiliates | 2,180 | 2,038 |
| Deferred Income Taxes | 4,455 | 4,541 |
| Other Assets | 8,738 | 8,984 |
| Total Assets | $112,189 | $107,399 |
| LIABILITIES AND EQUITY | ||
| Current Liabilities | ||
| Short-Term Debt Obligations | $10,602 | $6,861 |
| Accounts Payable and Other Current Liabilities | 24,504 | 25,903 |
| Total Current Liabilities | 35,106 | 32,764 |
| Long-Term Debt Obligations | 42,612 | 42,321 |
| Deferred Income Taxes | 4,055 | 3,802 |
| Other Liabilities | 8,146 | 7,965 |
| Total Liabilities | 89,919 | 86,852 |
| Commitments and Contingencies | ||
| PepsiCo Common Shareholders’ Equity | ||
| Common Stock, Par Value 12/3¢ Per Share | 23 | 23 |
| Capital in Excess of Par Value | 4,447 | 4,451 |
| Retained Earnings | 74,116 | 72,788 |
| Accumulated Other Comprehensive Loss | -14,343 | -15,024 |
| Repurchased Common Stock, in Excess of Par Value | -42,145 | -41,832 |